The Companies Act, 1956
619. Application of sections 224 to 233 to Government companies.
(1) In the case of a Government company, the following provisions shall apply, notwithstanding anything contained in sections 224 to 233.
(2) The auditor of a Government company shall be appointed or re-appointed by the 1[***] the Comptroller and Auditor-General of India:
2[Provided that the limits specified in sub-sections (1B) and (1C) of sections 224 shall apply in relation to the appointment or re-appointment of an auditor under this sub-section.]
(3) The Comptroller and Auditor-General of India shall have power-
(a) to direct the manner in which the company’s accounts shall be audited by the auditor appointed in pursuance of sub-section (2) and to give such auditor instructions in regard to any matter relating to the performance of his functions as such;
(b) to conduct a supplementary or test audit of the company’s accounts by such person or persons as he may authorise in this behalf; and for the purposes of such audit, to require information or additional information to be furnished to any person or persons, so authorised, on such matters, by such person or persons, and in such form, as the Comptroller and Auditor-General may, by general or special order, direct.
(4) The auditor aforesaid shall submit a copy of his audit report to the Comptroller and Auditor-General of India who shall have the right to comment upon or supplement, the audit report in such manner as he may think fit.
(5) Any such comments upon, or supplement, to the audit report shall be placed before the annual general meeting of the-company at the same time and in the same manner as the audit report.
1 The words “Central Government on advice of ” substituted by the Companies (Amendment) Act, 2000, w.e.f. 14th. December, 2000.
2 Inserted by Act No. 41 of 1974, w.e.f. 1st. February, 1975.